Since the November elections, several states, most recently New Mexico and Virginia, have taken steps to legalize marijuana sales for adult recreational use.
Another bright spot for the industry: robust demand.
Sales in California, the nation’s biggest legal cannabis market, jumped 36.4% to $1.2 billion in the first quarter versus a year earlier, according to industry tracker Headset.
Some of the recent converts, including New Mexico and New York, are not expected to begin allowing sales until next year.
The industry is eager for changes to federal laws that limit cannabis companies’ access to banking and other services.
Cannabis stocks surged last fall after voters in New Jersey, Arizona and three other states cleared the way for expanding legal sales of marijuana.
In addition, a rally in cannabis stocks fueled by the same social media chat rooms that sent GameStop shares skyrocketing in January faded after peaking in mid-February.
The ETFMG Alternative Harvest ETF, which has more than $1 billion in assets under management, has fallen 56.4% since Feb.
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